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 Corporate
Profile > Corporate Profile
OM Holdings Limited (ASX Code: OMH) is an independent,
internationally diversified minerals group with its primary focus
on creating a fully integrated manganese business. Its international
operations currently comprise a successful Singapore based metals
trading business supported by a ferro alloy processing facility
in China and manganese mine in Australia.
The key objectives for OMH to complete the development
of its fully integrated international manganese business incorporate
contributions by the following three business segments:
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the mining of manganese at the 100% owned
Bootu Creek Project, located in the Northern Territory of Australia.
The mining operation is due to produce manganese early in the
second quarter of 2006 at an annual rate of 550,000 to 600,000
tonnes. The operational advantages for this project include
close proximity to the rail link between Alice Springs and Darwin,
the deposit is strata bound and persistent over long strike
lengths, and is uniformly low in the contaminant, phosphorous; |
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the production of manganese ferro alloys
at a furnace complex located at Qinzhou in Guangxi Province,
south west China. This is a pivotal region for ferro alloy smelters
and ore distribution at Qinzhou. This site, adjacent to a new
port development, was chosen for its excellent transport logistics
and competitive power costs; and |
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the trading of manganese ore and alloys.
OMH though its trading division has developed a profitable manganese
ore and alloy trading business that represents a significant
market share of the business of ore imports into China, contract
alloy smelting and sales of alloys to steel mills in South Korea
and Japan. |
OMH and its business units aim to continue to build
upon the expertise and relationships forged by its key management
team particularly within the expanding People’s Republic of
China, thereby fulfilling its market niche in the specialised metal
materials market.
OMH is the largest shareholder of Territory Iron
Limited (ASX Code: TFE) holding a 12.5% strategic interest. TFE
has recently completed a preliminary feasibility study which supports
future development of the Frances Creek iron ore deposit located
in the Northern Territory of Australia. TFE recently announced its
ore reserve position at Frances Creek project which highlighted
3.8 million tonnes at 61.1% Fe and resources of 8.6 million tonnes
at 60.3% Fe.
The world demand for iron ore is buoyant and iron
ore prices have recently increased, driven by a growing Chinese
economy. Demand in the Asian market is forecast to remain strong
in the near term. TFE through its assets and a strong sales link
into China introduced by OMH, is well positioned to take advantage
of this market when the future mining operation is established.
The TFE website can be accessed at www.territoryiron.com.au
Key Facts about OMH
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100% owned Bootu Creek Manganese Project
in the Northern Territory is well advanced with production due
to commence early in the second quarter of 2006 |
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Annual production is targeted at 550,000
to 600,000 tonnes per annum with a current 5 year mine life
based on existing reserves. However significant potential to
expand the mine life in the near term due to the large strategic
land position and the deposit being strata bound and persistent
over long strike lengths offers excellent exploration prospects.
Expansion options will also be evaluated |
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Project has low strip ratio and low contaminants |
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Excellent project infrastructure with the mine located within
60km of the Alice Springs to Darwin rail link |
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Ferro alloy processing facility in south-west
China owned 100% by OMH |
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Superior logistic location for processing and distribution
of Bootu Creek manganese and other trading activities |
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Production capacity is 55,000 tonnes per
annum with the facility capable of producing SiMn and HcFeMn
with the product mix variable depending upon the margins sought |
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OMH trading division is capable of handling 20% of all manganese
imported into China, and its activities are complementary to
the groups mining and processing activities |
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Long established relationship with one of the world's largest
steel-makers, POSCO |
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Experienced management team with prudent financial acumen
capable of value adding through trading of OMH Group production
as well as satisfying other third party trading requirements |
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Marketing and trading of other commodities including iron
ore and chromite continues to be advanced |
OMH is a dynamic international company committed
to making a significant and meaningful change to the lives of all
stakeholders through a balance of profits and returns to shareholders,
the safety and empowerment of its workforce and a commitment to
environmental and social responsibility.
Over the past five years to 31 December 2005, OMH
has generated gross sales of over A$828 million and net profits
after tax of over A$19 million.
OMH is committed to providing returns to its shareholders
from these substantial earnings, with over A$3 million returned
to shareholders by way of dividends over the past five years.
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